subject
Business, 05.05.2020 08:17 LiliGrey4335

E23-8 (L02,3) (Schedule of Net Cash Flow from Operating Activities—Indirect Method) Ballard Co. reported $145,000 of net income for 2017. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2017 that might affect cash flows from operating activities.
1. Ballard purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share.
2. Ballard sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $145 per share. There were no unrealized gains or losses recorded on this investment in 2017.
3. Ballard revised its estimate for bad debts. Before 2017, Ballard’s bad debt expense was 1% of its net sales. In 2017, this percentage was increased to 2%. Net sales for 2017 were $500,000, and net accounts receivable decreased by $12,000 during 2017.
4. Ballard issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share.
5. Depreciation expense is $39,000.
6. Ballard Co. holds 40% of the Nirvana Company’s common stock as a long-term investment. Nirvana Company reported $27,000 of net income for 2017.
7. Nirvana Company paid a total of $2,000 of cash dividends to all investees in 2017.
8. Ballard declared a 10% stock dividend. One thousand shares of $10 par common stock were distributed. The market price at date of issuance was $20 per share.
Instructions
Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2017 net cash flow from operating activities.

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 21:00, live4dramaoy0yf9
In addition to having a bachelor's degree in accounting, a certification will increase a tax accountant's job opportunities and allow them to file reports with the
Answers: 1
image
Business, 22.06.2019 05:00, tipbri6380
The new york stock exchange is an example of what type of stock market?
Answers: 1
image
Business, 22.06.2019 13:50, tinasidell1972
The retained earnings account has a credit balance of $24,650 before closing entries are made. if total revenues for the period are $77,700, total expenses are $56,900, and dividends are $13,050, what is the ending balance in the retained earnings account after all closing entries are made?
Answers: 2
image
Business, 22.06.2019 18:30, miller5452
Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?
Answers: 1
You know the right answer?
E23-8 (L02,3) (Schedule of Net Cash Flow from Operating Activities—Indirect Method) Ballard Co. repo...

Questions in other subjects: